Evine improved its second quarter performance, growing sales and narrowing its net loss.
Net sales in the second quarter ended August 4 were $150.8 million, an increase of 1.2% from $148.9 million in net sales in the previous second quarter. Digital nets sales grew to 52.6%. Net loss in the second quarter came in at $40,000, compared to a net loss of $2 million in last year’s second quarter. Earnings per share was reported as $0.00 compared to negative $0.03 in last year’s second quarter.
As a percentage of net merchandise sales by category, home and consumer electronics were 21% of sales while beauty and wellness were also 21%; jewelry and watches were 40% while fashion and accessories were 18%.
Bob Rosenblatt, CEO, Evine, said, “We had a very productive quarter and I’m pleased with our results. We not only accelerated top line growth, but we improved bottom line profitability and grew adjusted EBITDA by 12% year-over-year. We also strengthened our balance sheet and overall liquidity with an amendment of our credit facility that will provide interest expense savings and additional availability. Our expertise is in building great brands. We do this by curating a portfolio of enticing products that have a unique story and then, with the right storyteller, we bring these products and brands to life across all of our platforms. We strive to keep our content fresh and relevant with a combination of both core and new brands. To that end, we introduced 17 new brands during the quarter and celebrated a number of milestone anniversaries. Additionally, during the quarter, we continued to advance our digital and social initiatives, grow our subscription business and increase purchase frequency.”
The company confirmed its outlook, which continues to expect normalized sales growth in the 2% to 5% range on a 52-week over 52-week basis, which equates to 0% to 3% on a reported basis due to the extra week in fiscal 2017. The company expects adjusted EBITDA to be in the $19 to $21 million range.